CSX Corp.’s second quarter 2017 net earnings, revenues and volumes all increased from a year prior, as E. Hunter Harrison completed his first full quarter as chief executive officer of the Jacksonville, Fla.-based Class I railway.
CSX Corp. posted net earnings of $510 million for the second quarter of 2017, up 15 percent from the same three-month period last year, according to the Jacksonville, Fla.-based Class I railway’s most recent financial statements.
Earnings per share (EPS) totaled $0.55 for the quarter, falling short of the $0.59 per share Wall Street analysts had projected.
CSX said it recorded a $122 million restructuring charge for the quarter, and excluding this charge, the railway would have reported an EPS of $0.64 per share.
Meanwhile, CSX’s revenues for the quarter reached $2.93 billion, up 8 percent year-over-year, primarily fueled by coal-related gains, strength in core pricing and volumes across other markets, and increased fuel recovery.
Second quarter volumes rose 2 percent from one year prior to 1.62 million carloads and intermodal units, partly driven by a 7 percent boost in coal shipments, which plummeted to historic lows in early 2016 due to new, stricter environmental regulations and an abundance of cheap alternatives like natural gas.
Meanwhile, CSX’s board authorized an additional $500 million for the current share repurchase program, which now totals $1.5 billion. As part of this program, nearly $500 million of the company’s shares were repurchased during the second quarter.
Earlier this month, the railroad’s board approved a $0.20 per share quarterly dividend on the company’s common stock, payable on Sept. 15 to shareholders of record at the close of business on Aug. 31.
Commenting on CSX’s current initiatives, E. Hunter Harrison, president and chief executive officer, said, “We are implementing Precision Scheduled Railroading on an expedited timetable, converting switching operations, balancing the network, streamlining resources and getting more out of our assets. Although there still remains a lot to be done, we are confident that these initiatives will drive improved customer service, greater resource efficiency and superior shareholder value.”
The second quarter marked the first full quarter that Harrison held the position as CSX’s CEO. Harrison stepped down as president and CEO of Canadian Pacific in January and was named CEO of CSX in March. He is also the former president and CEO of Canadian National.
CSX ups profits 15% in Q2 2017
